Comcast to Buy Rest of GE's Stake in NBCUniversal

Tuesday, 12 Feb 2013 | 4:30 PM ETCNBC.com

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Comcast Deal 'Born Out of Bullishness': Roberts

The decision to acquire the remaining stake of NBC Universal that was still owned by General Electric for approximately $16.7 billion was based on prospects for the future, Comcast CEO Brian Roberts says.

Comcast announced on Tuesday that it will buy General Electric's entire 49 percent common equity stake in NBCUniversal for approximately $16.7 billion.

Also, NBCUniversal, the parent company of CNBC and CNBC.com, will purchase the properties it uses at 30 Rockefeller Plaza in New York and CNBC's headquarters in Englewood Cliffs, N.J., for about $1.4 billion.

While the initial agreement was for Comcast to buy the remaining stake over a number of years, CEO Brian Roberts said on CNBC that accelerating the deal was "born out of bullishness" about the future prospects for the business.

The deal, which is expected to close at the end of the first quarter, will be funded with $11.4 billion of cash on hand, $4 billion of subsidiary senior unsecured notes to be issued to GE, $2 billion of borrowings under Comcast and/or bank credit facilities, and $725 million of subsidiary preferred stock to be issued to GE.

Comcast is purchasing the remainder of NBCUniversal from General Electric, reports CNBC's Julia Boorstin.

Comcast also released its earnings a day early. Fourth-quarter earnings rose 19 percent to 56 cents per share from 47 cents per share a year ago. Revenue climbed 5.9 percent to $15.9 billion from $15 billion a year ago on growth in its video, broadband and TV businesses. Operating income rose nearly 13 percent to $3.3 billion.

Comcast said its combined video, broadband, and voice customers rose 8 percent to 503,000 from the fourth quarter of 2011. Roberts also said on CNBC that the theme parks have been one of the biggest surprises and continue to grow.

Comcast also increased its dividend by 20 percent to 78 cents per share on an annualized basis and will repurchase $2 billion in stock in 2013.

GE, meanwhile, said the sale will allow it to return more cash to shareholders. GE's board increased the size of its share repurchase plan to $35 billion, with $23 billion remaining. GE plans to buy back about $10 billion in shares this year.